Fong Kh"Lippo Malls Indonesia Retail Trust (SGX: D5IU), a real estate investment trust focused on Indonesia-based retail properties, proposed a new acquisition. In the announcement, the trust also recommended that the purchase be partially funded by an equity fund raising exercise which might potentially dilute existing unit-holders’ stake in the trust by up to 12%. Given the extent of dilution, does this acquisition make sense for unit-holders?" read more at http://www.fool.sg/2014/09/16/is-lippo-malls-indonesia-retail-trusts-latest-property-purchase-a-winner/

KayHow does the Proposed Issuance of S$120m Perpetual Securities affects the future of Lippo? More cash?

16/06/2017 09:48

punklitezgearing will come down since it is "classified" as equity in the balance sheet. It will definitely be used to finance the kendari acquisition. Excess cash will be used to refinance 2 bonds expiring in July (5.875%) and Nov (4.48%) 2017. Therefore, gearing ratio will come down but all in cost of debt may increase.